Legal Question in Real Estate Law in California

Re: commercial leases

The security arrangements for commercial leases are usually tighter than for residential leases with similar credit. The reasons include the fact that the law allows it, and commercial leases are more likely to involve landlord commitments for tenant improvements, and a desire to have stability in the public impression of the overall premises.

So, I suppose the safest thing to say is that there tends to be one set of standard practices for top-rated D&B credits, another set for businesses with average D&B ratings, and yet more stringent standards for low-rated or unrated credits.

Among other things, lower-rated credit corporations and LLCs are almost invariably asked to provide personal guarantees of the members or owners, while creditworthy corporations are almost never asked for third-party credit support.

The amount of your deposit might be linked to the cost of tenant improvements paid for by the landlord at or near the time you moved in.

If the landlord wants you to talk to his lawyer, that is, to me, a favorable sign. He wants to negotiate the problems with your tenancy rather than move directly to a default-and-eviction scenario. At least, that's what I'd hope. Talk to the lawyer and try to work out some compromise you can live with, and live up to.

Re: commercial leases

What practices? Your message is barely comprehensible. In addition, the time to complain about the terms of your lease is BEFORE you sign it, not afterwards. There is no hard and fast rule about rental deposits in commercial leases as they are whatever amount the parties agree upon; if a potential tenant does not want to put up 4 months advance payemnt, then they do not have to sign the lease and they are free to go elsewhere. However, if they agree and sign the lease, they are bound by those terms. If they sign a lease which provides for penalties upon late payment, it should come as no surprise that the landlord will seek to enforce it. Commercial lease properties are a business and are the owner's source of income and most people get upset when their "paycheck" is late.